CRED Rolls Out Car Selling Feature Amidst 45% Valuation Dip

May 28, 2025

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Kunal Shah-led fintech platform CRED has introduced a new feature allowing users to sell their cars directly through the app. This product launch comes at a time when the startup is reportedly raising $75 million in a down round, slashing its valuation from $6.4 billion to around $3.5 billion—a sharp 45% drop.

The dual developments signal CRED’s attempt to diversify its offerings while navigating a cooling investor sentiment in the broader startup ecosystem.

New Feature: CRED partners with CARS 24 and Spinny to sell cars

CRED’s latest move expands its platform beyond credit card payments, rewards, and financial products.

Through this feature, members can now list and sell their used cars on the app, making the process smoother by tapping into CRED’s verified, high-credit-score user base. This is done in partnership with CARS 24 and Spinny.

The product is being positioned to simplify transactions in the used car market, leveraging user trust and in-app convenience.

This is a part of CRED’s ongoing strategy to build a broader fintech lifestyle ecosystem. In the past, the company has forayed into peer-to-peer lending, credit score tracking, lifestyle store and bill payments—and now, auto resale joins its growing portfolio.

Funding Woes and Down Round Reality

While CRED is innovating on the product front, its financial narrative tells a more tempered story. The startup is reportedly in talks to raise $75 million from existing investors such as Falcon Edge and Tiger Global. However, this round is expected to close at a valuation of $3.5 billion, a significant drop from its previous peak of $6.4 billion in 2022.

The revised valuation underscores shifting investor expectations in a high-interest, post-ZIRP (zero interest rate policy) market, where profitability and sustainable growth have taken precedence over expansion and burn.

CRED is not alone—other unicorns too are seeing recalibrated valuations amidst tighter capital flows.

CRED’s Strategic Pivot Amid Valuation Pressure

With its valuation nearly halved, CRED appears to be focusing on expanding utility for its high-trust user base to retain momentum. The launch of car-selling services could open a new monetization stream and strengthen user engagement, especially if it can tap into India’s $30+ billion used car market.

Whether these moves will help CRED regain investor confidence remains to be seen—but they mark a clear pivot toward long-term product diversification in the face of funding challenges.

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